Will the National Big Data Comprehensive Pilot Zone improve total factor productivity of enterprises?

In this article, a quasi natural experiment is constructed using 2012 to 2021 data from A-share listed companies in Shanghai and Shenzhen. It is determined that the establishment of the National Big Data Comprehensive Pilot Zone (NBDCPZ) will have an impact on total factor productivity (TFP) of enterprises utilizing the DID (Difference-in-Differences) method. Research finds that establishing NBDCPZ can improve the TFP of listed companies in the city where the park is located. The mechanism test results indicate that the establishment of NBDCPZ can encourage an increase of TFP of enterprises through the effects of competition, innovation, and digital transformation. According to further analysis of heterogeneity, this effect has a greater impact on for nonstate-owned enterprises, small- and medium-sized firms, and labor-intensive enterprises. Due to China's vast territory and significant differences in subjects, the tests conducted in this article can provide targeted development suggestions for different categories of subjects.